I. RECOMMENDATION:
The City Manager recommends Council approve Premium Pay for essential employees as proposed and schedule public workshop to discuss additional funding priorities.
II. BACKGROUND:
The City of Coalinga will be receiving $4,109,582 in ARPA funds. The coverage period is March 3, 2021, through December 31, 2024. All funds must be spent by December 31, 2026.
The following is a list of the only allowable uses of the funds:
- Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff;
- Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector;
- Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic;
- Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors;
- Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet.
III. DISCUSSION:
ARPA caps the premium pay allowance at $25,000 per essential employee.
The recommended premium pay is $1,000 per month per essential employee for each full month worked from June 1, 2020, through May 31, 2021. In order to be eligible, the employee must still be employed with the City as of the date the checks are made payable. This caps premium pay at $12,000 per employee.
The total fiscal impact associated with the premium pay is $926,000 to include all City staff. Elected and appointed officials are not included.
Of the $926,000 total, $122,561 has to be justified during the City's reporting obligation due to income thresholds. This is the approach many other City's have taken and, worst case scenario, the $122,561 may have to be repaid as a one time cost to the General Fund if not approved. However, in discussing this situation with other City Managers in the valley, it is expected for all justifications to be accepted.
If the premium pay is approved by Council as recommended, this would leave $3,183,582 to be allocated as outlined in the bullet points above under the Background portion of the staff report. Staff's recommended is to hold a public workshop for input from the community on how to allocate those funds.
Staff does have a list of recommended projects that will be presented during the workshop.
IV. ALTERNATIVES:
Do not approve.
V. FISCAL IMPACT:
$926,000 in premium pay from the $4,109,582 ARPA funds. | | |